Apple allows alternative payment systems within App Store with 27% fee.
In a recent development, Apple has decided to open its App Store to external billing options in the United States following the rejection of its appeal by the Supreme Court in an ongoing antitrust battle challenging its policies. The changes involve allowing third-party apps within the marketplace to provide buttons, links, or other methods guiding customers to purchasing mechanisms outside of Apple’s in-app billing system. This system, known for charging developers a commission ranging from 15% to 30%, will now coexist with external payment options.
Apple’s modification means it will provide a link to an external website for processing payments related to in-app purchases. However, Apple intends to retain a 12% revenue share from small businesses and a 27% fee from larger companies that choose to bypass its payment system. This specific clause has faced criticism from Epic Games CEO Tim Sweeney, who labeled it a “bad faith compliance plan.” Sweeney argued that this newly introduced commission undermines the court’s order for Apple to offer alternative payment options.
The legal battle between Apple and Epic Games began in 2020 when Epic Games filed a lawsuit challenging Apple’s perceived “stranglehold on the iOS ecosystem,” including its in-app purchasing mechanisms. Apple responded by removing Epic Games’ popular title, Fortnite, from the App Store. In 2023, a US appeals court rejected Epic Games’ claims that Apple violated antitrust laws regarding third-party app stores but upheld a decision related to alternate billing options.
Despite the recent developments, the Supreme Court declined to hear Epic Games’ appeal, maintaining the complexity of this ongoing legal saga.
On a different note, considering the evolving landscape of digital ecosystems and antitrust concerns, a noteworthy topic for discussion could be the broader implications of such legal battles on the future of app marketplaces and the relationships between major tech companies and developers.
